nelson. >> i'm paula faris. happy new year, everyone. what better way to start off than scenes from new york. more than a million folks crowding into times square, to see the famous ball drop welcoming in 2013 but you wouldn't know anything special happened now because look at this. everybody has gone home and almost all of that confetti has been cleaned up. they are quite on top -- >> by the time the sun comes up, that will be clean. out in seattle hundreds of thousands gathered to watch the fireworks at the space needle. fireworks launched off the needle as well as the ground below. they were setting up displays and made it easier by the needle's new paint job which provided them with a better grip. 2012 in london was wrapped up with fireworks, the sky lit ov up over the river thames as well

as the london eye. a bloody good time had by all, i'm certain. >> all right. in other major story it was not a good time for lawmakers in the senate working through the night to reverse the effects of the fiscal cliff. >> and a vote came in the wee hours of the new year's and tahman bradley has more on this last-ditch session. kind of ruined some politicians' night, didn't it? >> reporter: exactly right. happy new year to you, paula and john. the senate bill passed in the wee hours of the morning with overwhelming support and heads to the house where its fate is uncertain. as americans rang in the new year, the senate was in session in the middle of the night passing a bill after the fiscal cliff deadline had gone by. >> i think we can say we've done some good for the country. >> reporter: since lawmakers missed the midnight deadline nearly every american wakes up with higher taxes but congress can undo those tax hikes if the

house passes the senate's bill. vice president biden, who was instrumental in brokering the deal, told reporters he's hopeful it can get through the house but you never know. >> you shouldn't predict how the senate will vote before they vote and number two, you surely shouldn't predict how the house is going to vote. >> reporter: it would extend tax cuts for all workers earning under $400,000 and raise taxes on people above that level and prevent a big tax hike in an estate valued at less than $5 million and extend unemployment benefits for 2 million people. the house will take it up later this morning, the hope is that chamber can pass it before the economy is rocked by the tax hikes. >> happy new year. i feel very, very good. >> reporter: president obama called the senate vote the right thing to do for the country and he encouraged the house to pass it right away. >> all right, abc's tahman bradley reporting from washington. thanks. have a very happy new year. we know you're going to be

today, tahman. >> same to you. let's talk about hillary clinton's health crisis. it has the secretary of state in the hospital this holiday. >> there are new details from doctors about the blood clot that was found near clinton's brain. abc's wendy gillette has the latest from new york. >> reporter: hillary clinton's doctors found it between the brain and the skull. >> it could cause a stroke. her doctors say she has no sign of that. >> reporter: they say it did not result in a stroke or neurological damage. she's being treated with blood thinners to help dissolve the clot and the secretary of state is expected to make a full recovery. the doctors add she is in good spirits making excellent progress. clinton's medical problems began after she finished a grueling trip to europe. she developed a stomach virus which caused severe dehydration. days later she fainted and suffered a concussion then the discovery of the clot. this is the second time she has been diagnosed with a blood clot. in 1998, the 65-year-old was

hospitalized for a clot behind her knee following a busy travel schedule while campaigning as first lady. she recently told abc's barbara walter her schedule is incredibly demanding. >> are you exhausted? >> i am. to be honest, i am because when i do something i really want to do it, i want to do it to the best of my ability. that means i pretty much work all the time. >> reporter: a routine mri detected the clot. her doctors say she'll be released when her medication dose is established. wendy gillette, abc news, new york. and there's a new look at the attack in benghazi, libya that embroiled the state department and white house. a report says the cia and fbi made big changes in their public talking points leading to all that confusion about the attack last september 11th that left four americans dead. the report also says the director of national intelligence promised a time line to explain the changes but hasn't produced it. the north carolina governor

has issued a pardon in an infamous civil rights case. the wilmington ten were wrongly convicted of firebombing a grocery store and trying to cover it up. the three key witnesses in the case later recanted their testimony and amnesty international and others took up the issue portraying then as political prisoners. >> these pardons have to remove a stain from the nation until today. north carolina had fallen short. it took too long, but thank god it has come. >> we're thankful that she was able to see through the smoke screens and come to the realization that north carolina had to apologize. >> the pardon means the state no longer thinks the ten, four of whom have since died, committed a crime. federal investigators say it could take a month to finish their probe of a deadly tour bus crash in eastern oregon. nine people were killed and more than two dozen injured when the bus heading back to british

columbia from las vegas hit a concrete barrier, plowed through a guardrail and plunged 200 feet down an embankment. officials say there was ice on the highway, but they still don't know exactly how fast the bus was going. all right. so let's take a look at the weather for the first day of 2013. rainy holiday from houston to new orleans and also to the atlanta area. rain that could be heavy with the threat of flooding parts of west virginia and ohio could pick up a couple inches of snow. >> the coldest air of the season hitting chicago, denver and omaha. the rose parade gets off to a chilly start. seasonable in the northeast but windy. a balmy 81 in miami. >> sounds nice. >> coming up the new laws that hit the books when the strucloc struck midnight. how did your 401(k) do for the year the report card is straight ahead. plus, is it the end of a pop era? we'll tell you that you might

have heard the last of "gangnam style." ♪

welcome back. it was a good finish for the year on wall street. the dow had its best new year's ever session gaining 166 points and ending the year up 7.3%. the nasdaq picked up 59 points. it soared 16% this past year. investors were encouraged by signs of a deal on the fiscal cliff talks and we will know later today if that happened for sure. gasoline prices, also soared this past year to their highest ever.

aaa says the average price is $3.29 a gallon. that is less than the two cents higher than it was a year ago. but gas was 65 cents a gallon more last april, almost $4, the low came 12 days ago. and the new year brings a standoff over health care coverage. the craft store chain hobby lobby could face fines as much as $1.3 million a day starting today in a battle over a new mandate. the company won't let its insurance cover morning after contraception. its owners say it violates their beliefs. amazon is apologizing for the christmas eve outage on net flicks. they host many commercial websites including netflix and many customers said poor timing. won't able to access movies well through christmas day which is pretty much what we do on christmas day is watch movies. netflix had more problems yesterday, this time on its dvd websites and not caused by amazon.

so they can't point the finger this time. last nighttimes square celebration help new york set a record. more than 52 million tourists visited the big apple last year spending almost $37 billion. >> a lot of money to the local economy. that's 2% more than the previous record set the year before. the city wants its economy to rely more on tourism and less on wall street. i'd say. >> that's a great thing. come here. spend your money. i don't feel like i see any of this money. >> i have no desire to ever go to times square. >> i thought you would say you have no desire to get billions of dollars. >> not really. new laws on the books from cats, to pigs to shark fins. a couple of tigers pushed bowl season into high gear last night. [ woman ] weighing myself in times square

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strange way to welcome in the new year. a convoy of art on wheels that showcases the unique fashion of art carts. how about that? they were brilliantly lighted car, some even blowing fire, a little rain did not dampen their spirits. >> all right, well, let's take a look at the morning road conditions, wet along i-10 around new orleans. light snow on the roads around columbus, ohio and charleston, west virginia. delays in atlanta, houston, charlotte, kansas city, new orleans, st. louis and los angeles. i think that's just about all the airports in america. >> as sure as the ball drops at midnight new year's brings something else with it, a slew of new laws. >> this january 1st is no exception, once again no shortage of off-beat and wacky laws. abc's linsey davis has a look. >> reporter: when the ball drops, it's all about out with the old and in with the new. new laws, that is.

some that are rather unusual. like public act 97-743 in illinois, which imposes a $1,000 fine on anyone who pops a wheelie on a motorcycle while speeding. come tuesday at 12:01, concord, massachusetts, will be the first community in the nation to outlaw plastic bottles. yes, consider these containers contraband. in the sunshine state, don't flash your headlights to warn drivers about a speeding trap or you're find yourself getting pulled over. you might have better luck in california. you can now whip out your proof of insurance on your smartphone. >> what a wonderful thing. if you have your insurance with you all the time, maybe we can have our driver's license on there. >> reporter: turns out 2013 will be unlucky for cat lovers in wellington, kansas, where they're now restricting the number of cats allowed in a household to no more than four. while kentucky is apparently starting to look a lot like hog heaven. the state's growing population

of feral pigs caused them to slap a fine on those releasing them in the wild. and in landlock, illinois, it's no longer legal to possess, sell or distribute shark fins. linsey davis, abc news, new york. >> good to know. all right, the new year will bring a fresh start for the children of sandy hook elementary school. officials in newtown, connecticut, have set this tuesday as the first day of opening school following the massacre there. >> parents are being invited to join their children on the first few days back and students, well, they're being encouraged to take the bus to begin getting back to familiar routines. can you understand if they're a little apprehensive. turning to sports, six college bowl games are being played. >> all on the abc, espn family of networks. espn also has your new year's eve highlight. >> cassidy hubbarth with your "sportscenter" update. let's go bowling. lsu took on clemson in the

chick-fil-a bowl in atlanta, georgia. fourth clemson down 24-16 driving tajh boyd to deandre hopkins for 12-yard score. 339 yards passing. clemson facing fourth and 16 and boyd gets it to hopkins. hopkins torched it for 190 receiving yards. later in the drive a 37-yard field goal is good and clemson comes back to beat lsu, 25-24 for its second bowl win in its last seven tries. to the nba, the heat snapping a two-game losing streak. an a 1/2 low on the line. nicola was all over the boards. had 29 rebounds on the day. under a minute to go, down two. bosh from the elbow, 22 big down the stretch. three seconds to go, still tied. heat with a chance to win. the final shot and misses off

the side of the backboard. thinks he's fouled but no call. head to overtime. lebron james, 36 points, 11 assists and 8 boards, heat up 108-106. 13 seconds left. magic down two and dwyane wade gets a big steal and a dunk to seal it. wade, 21 points, miami wins it, 112-110 in ot. i'm cassidy hubbarth, happy new year and have a good day. >> thanks, and it's going to be a day full of a lot of other college bowl games. san francisco, a unique way to end the end of the year, donating to goodwill. >> so many were making donations on new year's eve they decided to make it a celebration and organizers gave away movie tickets and other stuff for donations some were quality. >> we get prada, chanel, bhiekle kors, so what you find at macy's and at bloomington's you'll also

find at goodwill. >> people in the bay area gave 20 million pounds away each year most being donated this week. >> nice to see them denating high-end items, as well. the polls say not so happy new year for plenty of now former nfl coaches. >> harsh stuff. a review of who's out. we'll be right back. rv. mr. clean magic eraser extra power was three times faster on permanent marker. elsewhere against dirt, it was a sweep, with scuffed sports equipment... had it coming. grungy phones... oh! super dirty! and grimy car rims... wow! that really works! ...all taking losses. it looks like mr. clean has won everything. the cleaning games are finished? and so are we. okay, but i just took a mortgage out on the cabinet. [ male announcer ] clean more, work less, with the mr. clean magic eraser extra power. [ male announcer ] clean more, work less, you won't run into deals this big just anywhere. slide on in for sears year end event... save up to 25% off appliances...

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and you are. [ male announcer ] ask your doctor if chantix is right for you. well, inside the brewer, there's a giant staircase. and the room is filled with all these different kinds of coffee. actually, i just press this button. brew what you love, simply. keurig. time to check the new year's day edition of "the pulse." first day of 2013 news about a global phenomenon of 2012. that's right. gangnam style which is about to go out of style. >> thankfully i think we've seen enough, right? psy on the big stage performing on new year's eve in times square but that might be the

last time we'll see that act. we can all hope and pray. >> turned 35 yesterday and said the combination of the birthday and gig in times square, time to retire gangnam act live. >> even he admits it's time. >> my daughter isn't sick of it. >> she's 9. >> he must be tired of doing it. >> gosh. we mentioned the nfl coaches who have been fired. there are plenty of them so let's get to it. >> we'll start off with andy reid from the eagles. the winningest coach but a 4-12 season won't cut it. >> chicago bears need a new coach after lovie smith's firing. the bears just missed the playoffs despite a 10-6 record. >> norv turner of the chargers out. his team missed the playoffs for the third straight season. >> cardinals fired ken whisenhunt after six seasons in charge. he's the only coach to lead the team to a super bowl. >> browns letting go pat shurmur after they went 9-23 over the

last two seasons. >> romeo crennel, his team finished 2-14 securing the pick in the upcoming draft. >> chan gailey fired after three seasons in c his team never did better than six wins. >> tough business, man. you got to get results here. wow. i know. >> while we were talking about football a unique distinction for the holiday of the denver broncos. >> if denver wins the super bowl holliday will be the only player to go undefeated. five games for the texans then waived. denver picked him up. hasn't lost since, 11 games, just three to go. at this point in the season it's still a long shot but still how often do we talk about that. >> the magic touch. >> i think that's more peyton manning. >> that helps too. all right, for some of you local news is next. >> and for everyone else we'll be back with our man in l.a. getting all kinds of attention.

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>> live fromlet kgo broadcast center. this is it abc 7 news. >> good morning 5:00 on jan 1st 2013 and thank you for starting your year with us. i am christin zee. happy new year. we are starting on a frosty note. might be warm inside but outside it is chilly. >> it is chilly . no burping of wood to get yourself warm. live doppler 7. weak disturbances moving through our atmosphere. it is cloudy as it is going to get. temperatures right now are running in the 30s and 40s in most areas